This recent rally, being actually a pullback in a bearish trend
, has been pretty strong. On its way up price has managed to stack the range of 94 pips twice on each other. But the most recent price action
has shown some weakness. The failure of price to reach the upper border of the blue channel is the information that the rally has decelarated and it's also the first sign of a potential change in behavior. Thus next we can expect price to return to the lower border of the channel. The horizontal range to the left, spread between 0.943 and 0.95, is acting as resitance on the current price action
. However, if demand is stronger than I interpret it, we'll see price go testing the upper border of the range @ 0.95.
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